Question 1
A portfolio is valued at $100 at the start of the period and $112 at the end, with no external cash flows. What is the holding period return?
Correct Answer:
12.0%
Question 2
Which return measure is unaffected by the timing and size of external cash flows controlled by the client rather than the manager?
Correct Answer:
Time-weighted return
Question 3
A portfolio earns 5% in the first month and 3% in the second month. What is the two-month time-weighted (geometrically linked) return?
Correct Answer:
8.15%
Question 4
An investor deposits $1,000 today and the account grows to $1,210 after exactly two years with no other cash flows. What annualized money-weighted (compound) return does this represent?
Correct Answer:
10.0%
Question 5
A portfolio returns 2% per quarter. Using compounding, what is the annualized return?
Correct Answer:
8.24%
Question 1
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About this Exam

Prepare with the CIPM Level I Practice Questions - CIPM Program Level I (Principles) Exam practice quiz. This question bank includes 100 questions covering return, portfolio, attribution, returns, and performance. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CIPM Level I Practice Questions - CIPM Program Level I (Principles) Exam

This practice set contains 100 questions from the matching question bank and focuses on return, portfolio, attribution, returns, and performance. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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